Alignment Healthcare (NASDAQ:ALHC) Shares Gap Down – What’s Next?

Alignment Healthcare, Inc. (NASDAQ:ALHC) shares gapped down prior to trading on Friday . The stock had previously closed at $20.42, but opened at $18.84. Alignment Healthcare shares last traded at $20.0470, with a volume of 950,841 shares trading hands.

Key Alignment Healthcare News

Here are the key news stories impacting Alignment Healthcare this week:

• Positive Sentiment: Q4 results beat expectations: revenue of ~$1.01B (vs. ~$1.00B est.) and EPS of ($0.05) vs. consensus ($0.15) loss; revenue grew ~44% year-over-year — a clear near-term operational beat. Zacks: Q4 Loss, Beats Revenue Estimates
• Positive Sentiment: Company says Q4 delivered record revenue and membership and that it beat the high end of guidance across key metrics — supporting growth narrative for Medicare-focused membership expansion. Yahoo Finance: Q4 Highlights
• Neutral Sentiment: Analyst and press write-ups emphasize strong top-line momentum but recommend watching profitability trajectory and margin pressures as membership scales. Earnings Snapshot
• Neutral Sentiment: Public short-interest data reported around these dates appears inconsistent (zeros and NaN values), so short-interest signals are unreliable for interpreting today’s move.
• Negative Sentiment: Forward guidance disappointed relative to Street expectations: Q1 revenue guidance was presented below consensus (~$1.2B vs. ~$1.3B consensus) and FY2026 revenue guidance was set roughly in line-to-slightly below consensus ($5.1B–$5.2B vs. ~$5.2B est.), which likely triggered profit-taking despite the quarter’s beats. GlobeNewswire: Q4 & FY Results
• Negative Sentiment: Company remains unprofitable (negative net margin and ROE; EPS still a loss), so valuation sensitivity is high — investors often punish growth names that don’t show a clear path to sustained profitability. MarketBeat: Earnings Summary

Wall Street Analyst Weigh In

Several brokerages have recently commented on ALHC. UBS Group lifted their price target on shares of Alignment Healthcare from $18.00 to $21.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 14th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $22.00 target price on shares of Alignment Healthcare in a report on Monday, November 3rd. Piper Sandler upped their target price on shares of Alignment Healthcare from $20.00 to $30.00 and gave the company an “overweight” rating in a research report on Tuesday, January 6th. Weiss Ratings reissued a “sell (d-)” rating on shares of Alignment Healthcare in a research note on Wednesday, January 21st. Finally, Wall Street Zen upgraded Alignment Healthcare from a “hold” rating to a “buy” rating in a research report on Saturday, February 7th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $23.95.

Alignment Healthcare Trading Down 3.6%

The company’s fifty day simple moving average is $21.01 and its two-hundred day simple moving average is $18.48. The company has a market capitalization of $3.94 billion, a price-to-earnings ratio of -164.05, a price-to-earnings-growth ratio of 5.13 and a beta of 1.16. The company has a quick ratio of 1.61, a current ratio of 1.61 and a debt-to-equity ratio of 1.99.

Alignment Healthcare (NASDAQ:ALHC) last posted its earnings results on Thursday, February 26th. The company reported ($0.05) earnings per share for the quarter, topping the consensus estimate of ($0.15) by $0.10. The firm had revenue of $1.01 billion for the quarter, compared to analyst estimates of $1 billion. Alignment Healthcare had a negative return on equity of 16.23% and a negative net margin of 0.57%.The company’s revenue for the quarter was up 44.4% on a year-over-year basis. During the same period in the previous year, the company posted ($0.16) earnings per share. Research analysts forecast that Alignment Healthcare, Inc. will post -0.69 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Hyong Kim sold 16,506 shares of the company’s stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $21.35, for a total transaction of $352,403.10. Following the completion of the transaction, the insider directly owned 333,133 shares of the company’s stock, valued at $7,112,389.55. This represents a 4.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Andreas P. Wagner sold 22,238 shares of Alignment Healthcare stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $20.47, for a total value of $455,211.86. Following the completion of the sale, the insider directly owned 169,805 shares in the company, valued at approximately $3,475,908.35. This represents a 11.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 2,125,938 shares of company stock valued at $41,799,570. Corporate insiders own 7.00% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. Royal Bank of Canada increased its stake in Alignment Healthcare by 92.6% in the 1st quarter. Royal Bank of Canada now owns 92,379 shares of the company’s stock valued at $1,720,000 after buying an additional 44,413 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Alignment Healthcare by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 59,557 shares of the company’s stock valued at $1,109,000 after acquiring an additional 2,594 shares in the last quarter. Goldman Sachs Group Inc. increased its position in shares of Alignment Healthcare by 79.1% in the first quarter. Goldman Sachs Group Inc. now owns 972,715 shares of the company’s stock valued at $18,112,000 after acquiring an additional 429,703 shares during the last quarter. Woodline Partners LP acquired a new stake in shares of Alignment Healthcare in the first quarter valued at about $2,142,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Alignment Healthcare by 16.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 307,655 shares of the company’s stock worth $5,729,000 after acquiring an additional 44,452 shares in the last quarter. Institutional investors and hedge funds own 86.19% of the company’s stock.

Alignment Healthcare Company Profile

Alignment Healthcare, Inc (NASDAQ: ALHC) is a health care company specializing in value-based care for Medicare Advantage beneficiaries. The company leverages an integrated care model that combines in-home clinical services, telehealth capabilities and digital health tools to manage chronic conditions, improve outcomes and enhance patient experience.

At the core of Alignment Healthcare’s approach is a proprietary technology platform that aggregates real-time clinical and claims data to support preventive care, risk stratification and personalized care plans.